Real estate sector sentiment at an all-time high in Q4 2021, shows report

According to Knight Frank India’s newest study, “Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index,” the industry’s sentiment Index Score reached an all-time high of 65 in Q4 2021, due to reduced economic uncertainty leading to stability in demand in the real estate sector.

In Q3 2021, a sentiment score of 63 was the previous high. According to the report, the Future Sentiment score, which measures stakeholders’ expectations in the short to medium term, is still optimistic, though it has dropped from 72 in Q3 2021 to 60 in Q4 2021, indicating cautious optimism as the impact of the Omicron on the Indian economy has yet to be determined.

According to the research, the south and east zones’ future sentiment scores increased somewhat in Q4 2021 compared to Q3 2021. The south zone’s future sentiment score rose to 64 in Q4 2021 from 62 in Q3 2021, as important southern regions saw strong growth in both the office and residential sectors.

The east zone’s score increased from 57 in the third quarter of 2021 to 58 in the fourth quarter of 2021. With ratings of 57 and 56 in Q4 2021, the north and west zones remained optimistic. Stakeholders in these zones are cautiously optimistic for the near term as the Omicron variant of COVID – 19 related hazards emerge.

According to the report, 60 % of respondents expect the credit situation to remain unchanged over the next six months, while 37 % expect it to improve.

In Q4 2021, 61 % of respondents said that office leasing will remain steady over the next six months, with rents projected to improve, compared to 27 % in Q3 2021 who predicted that office rentals will rise in the following six months. In terms of new office supply, 88 % of respondents in Q4 2021 believe it will either remain unchanged or increase during the next six months.

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